On 13 December 2019, the European Banking Authority (EBA) issued a consultation setting out proposed amendments to Commission Implementing Regulation 2016/2070 as regards benchmarking portfolios, reporting templates and reporting instructions.
The main update to Implementing Regulation 2016/2070 relates to the introduction of the IFRS 9 benchmarking templates.
Article 78 of the Capital Requirements Directive IV requires Member State competent authorities (NCAs) to conduct an annual assessment of the quality of internal approaches used for the calculation of own funds requirements. To assist NCAs in this assessment, the EBA calculates and distributes benchmark values against which individual institutions’ risk parameters can be compared. These benchmark values are based on data submitted by institutions as laid out in Implementing Regulation 2016/2070 which specifies the benchmarking portfolios, templates and definitions to be used as part of the annual benchmarking exercises.
For the 2021 benchmarking exercise, changes to the reporting templates and instructions are necessary in particular to integrate the sub-set of templates dedicated to the IFRS 9 benchmarking.
The deadline for comments on the consultation is 13 February 2020. A public hearing will take place at the EBA’s premises on 3 February 2020.